How to Create a Culture of Organizational Wellbeing

When executives do this right, they help their organizations thrive

Individual wellbeing, employee engagement, and a culture of wellbeing link to important organizational outcomes, such as productivity, health, and employee retention. These factors complement and affect one another in ways that leaders, managers, and organizations can influence.

Managers should be aware of their own engagement and wellbeing.

So says a recent Gallup study that explored relationships among individual wellbeing, employee engagement, and a wellbeing culture over time. The study asked more than 5,000 full-time workers in the U.S. questions about their engagement, wellbeing, and workplace, then resurveyed them using the same questions about a year later. "We wanted to understand how the elements of wellbeing, engagement, and culture complement and influence each other," says Jim Harter, Ph.D., Gallup's chief scientist of workplace management and wellbeing.

The study also revealed:

Individual wellbeing had an effect on future employee engagement and changes in employee engagement. "If people had higher wellbeing in year one, they would tend to have higher engagement in year two and a more positive change in engagement in year two," Harter says. "People that have high individual wellbeing are more likely to see their workplace as positive, productive, and engaging. Conversely, if they are struggling or suffering, it rubs off on the workplace and the team."

Employee engagement in year one affected future wellbeing culture and wellbeing culture change. "When you have an engaging team, you're more likely to have an open and trusting culture," Harter says. "That encourages people to talk openly about wellbeing in ways that positively influence each other's wellbeing."

These positive changes in individual wellbeing and employee engagement fed further improvements in wellbeing and engagement, completing a healthy organizational cycle.

How managers can promote wellbeing and employee engagement

So here's how managers can keep engagement alive in year one and year two (and in years three, four, and beyond):

Be aware of their own engagement and wellbeing. As the research shows, there's a strong connection between wellbeing and engagement, and that applies to managers as well as their employees. For example, employees may not be aware of all the wellbeing opportunities a company offers, but a manager who discusses and promotes them can encourage his employees to get involved in wellbeing activities. This reflects a powerful cascade effect from managers to employees, Harter says: "When managers care about their wellbeing, their team members take a greater interest in their own wellbeing."

Give employees a platform to recognize the actions they're taking to improve their wellbeing and engagement. "A lot of studies are showing that change happens because of our social environment," Harter says. "Norms are shared in a way that's contagious, and companies and managers can help set those norms. But the team will carry them forward."

Employees who are engaged and thriving also have greater agility and resilience. "When people are engaged and have thriving wellbeing, their life situations don't weigh them down and keep them from performing," Harter says. "They see changes as opportunities, not problems." That's a constructive perspective, and managers who promote it by encouraging wellbeing and engagement will help their companies reap the benefits in year one and beyond.

The Five Essential Elements of Wellbeing

For more than 50 years, Gallup scientists have been exploring the demands of a life well-lived. More recently, in partnership with leading economists, psychologists, and other acclaimed scientists, Gallup has uncovered the common elements of wellbeing that transcend countries and cultures. This research revealed the universal elements of wellbeing that differentiate a thriving life from one spent suffering. They represent five broad categories that are essential to most people:

Career Wellbeing: how you occupy your time -- or simply liking what you do every day